Performance appraisal, also known as performance evaluation or performance review, is a systematic process by which an organization assesses an employee’s job performance and productivity.
The methods of performance appraisal vary, and organizations often use a combination of them to obtain a comprehensive understanding of an employee’s contributions. Here are some common methods of performance appraisal:
- Graphic Rating Scales:
- Description: This method involves using a predefined set of performance factors or traits (e.g., communication skills, teamwork) and a rating scale to evaluate an employee’s performance.
- Process: Supervisors rate employees on each factor using a numerical scale or descriptive terms. The scores are then totaled to provide an overall performance rating.
- Behavioral Observation Scales (BOS):
- Description: BOS focuses on observable behaviors associated with job performance. It is similar to graphic rating scales but emphasizes specific, observable behaviors rather than general traits.
- Process: Supervisors observe and evaluate employees’ behaviors related to job performance, providing feedback on specific actions and outcomes.
- Critical Incident Technique:
- Description: This method involves identifying and documenting specific incidents that highlight exceptional or problematic employee behavior.
- Process: Supervisors maintain a log of critical incidents throughout the appraisal period, noting both positive and negative behaviors. These incidents are then discussed during the performance review.
- 360-Degree Feedback:
- Description: In this method, feedback is collected from multiple sources, including supervisors, peers, subordinates, and sometimes customers or clients, to provide a holistic view of an employee’s performance.
- Process: Employees receive feedback from various stakeholders, offering a comprehensive and multi-perspective assessment. This method promotes a more well-rounded evaluation.
- Management by Objectives (MBO):
- Description: MBO is a goal-oriented approach where employees and managers collaboratively set specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
- Process: Performance is evaluated based on the achievement of these objectives. Regular check-ins and discussions between employees and managers help align individual goals with organizational objectives.
- Ranking Method:
- Description: Ranking involves ordering employees from highest to lowest based on their performance. It is a comparative method.
- Process: Supervisors compare employees’ performance and rank them accordingly. The employee with the highest rank is considered the best performer, and so on.
- Paired Comparison Method:
- Description: This method compares each employee with every other employee, determining who is the better performer in each pair.
- Process: Supervisors create pairs of employees and choose the better performer in each pair. The number of times an employee is chosen as the better performer contributes to their final ranking.
- Narrative or Essay Appraisals:
- Description: This method involves a written description of an employee’s performance, strengths, weaknesses, achievements, and areas for improvement.
- Process: Supervisors provide a detailed narrative assessment, often including specific examples and anecdotes to illustrate points. This method allows for a more qualitative and personalized evaluation.
- Forced Distribution Method:
- Description: This method requires categorizing employees into predetermined performance levels, such as top performers, average performers, and low performers, based on a predetermined distribution curve.
- Process: Supervisors allocate a certain percentage of employees to each performance level, adhering to the forced distribution curve.
Organizations often choose the performance appraisal method or a combination of methods based on their specific goals, culture, and the nature of the job roles. Regular and constructive performance appraisals contribute to employee development, goal alignment, and overall organizational success.